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Factors Influencing ACRE Program Enrollment AgEcon
Woolverton, Andrea E.; Edwin, Young.
Authorized by the 2008 Farm Act, the Average Crop Revenue Election (ACRE) program is the first revenue-based, income-support program that calculates payments using recent market prices and a producer’s actual plantings. The payments are triggered when a farm’s revenue and State revenue (price multiplied by yield per planted acre) fall below a calculated guarantee for a crop. By contrast, other income-support programs are based on legislated rates and support levels, computed using a farm’s base acres and payment yields. Had the ACRE program been available during crop years 1996-2008, this report shows that farmers would have benefited more from participating in 2002 Farm Act programs than in the hypothetical ACRE program. The report further suggests that,...
Tipo: Report Palavras-chave: Average Revenue Crop Election; ACRE; 2008 Farm Act; Farm bill; Commodity programs; Risk management; Income support; ERS; USDA; Agricultural and Food Policy; Crop Production/Industries.
Ano: 2009 URL: http://purl.umn.edu/55954
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WHY WAS ACRE A NO-GO WITH IOWA FARMERS? AgEcon
Edwards, William M..
Tipo: Article Palavras-chave: ACRE; Risk; Commodity; Program; Resource /Energy Economics and Policy; Q18.
Ano: 2011 URL: http://purl.umn.edu/120005
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The Impact of the Average Crop Revenue Election (ACRE) Program on the Effectiveness of Crop Insurance AgEcon
Hong, Sung Wook; Power, Gabriel J.; Vedenov, Dmitry V..
This paper analyzes the effect of the ACRE program adopted in the final version of the 2007 Farm Bill on the risk-reducing effectiveness of insurance products. To the best of our knowledge this is a first attempt to analyze the effect of the ACRE program on the risk management decisions of crop producers. In particular, we compare the risk-reducing effectiveness of the two most common insurance contracts — APH and CRC — under the provisions of the 2002 Farm Bill and under ACRE program for representative cotton producer in Texas and corn producer in Illinois. These particular crop/region combinations are selected so as to represent situations of low and high price-yield correlations, respectively.
Tipo: Conference Paper or Presentation Palavras-chave: Crop insurance; Farm Bill; ACRE; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/46755
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Average Crop Revenue Election (ACRE) Program or Traditional Government Payment Programs: What Factors Matter? AgEcon
Chen, Yunguang; Wang, H. Holly; Patrick, George F..
Rankings of different risk management portfolios including Average Crop Revenue Election (ACRE), traditional government payment programs, crop insurance and hedging in futures; and optimal choices of insurance coverage levels and hedge ratios are evaluated for a representative central Indiana corn farm, using Monte Carlo simulation and optimization of expected utilities. The changes of preference between ACRE and traditional government programs under comprehensive scenarios of price and yield risks are studied. Also, Interactions between ACRE and other risk management instruments are examined, and government costs and risk management efficiencies between ACRE and traditional government programs are compared. The results show a strong preference of ACRE for...
Tipo: Conference Paper or Presentation Palavras-chave: ACRE; Farm Bill; Crop insurance; Willingness to pay; Government expenditure; Government programs; Agricultural and Food Policy; Agricultural Finance; Risk and Uncertainty.
Ano: 2010 URL: http://purl.umn.edu/61490
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An Overview of the U.S. Agricultural Economy and the 2008 Farm Bill AgEcon
Harwood, Joy L..
The 2008 farm bill involved 16 months of debate. The end product is similar to the 2002 farm bill in the crops arena, continuing counter-cyclical payments, direct payments, and marketing assistance loans. In addition, however, the 2008 bill adds a new, optional counter-cyclical revenue program (Average Crop Revenue Election, or ACRE), authorizes a new permanent disaster program, and contains various other changes. The new ACRE program provides an entirely new set of dimensions for producers to consider in deciding whether to opt into the program, including the multi-year trade-off between the loss of potential “traditional” payments and the revenue protection provided by ACRE, as well as the producer’s own expectations about yield and price trends and...
Tipo: Journal Article Palavras-chave: Farm bill; Farm programs; ACRE; Permanent disaster assistance; Regulatory process; Agricultural and Food Policy.
Ano: 2009 URL: http://purl.umn.edu/49861
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